The U.S. Automobile Industry: Monthly Report on Selected Economic Indicators

THE U.S. AUTOMOBILE INDUSTRY: MONTHLY REPORT ON SELECTED ECONOMIC INDICATORS

Report to the Subcommittee on Trade, Committee on Ways and Means, on Investigation No. 3 3 2-2 0 7 Under Section 3 3 2 of the Tariff Act of 1930

USITC PUBLICATION 185 3 MAY 1986

United States International Trade Commission I Washington, DC 20436 UNITED STATES INTERNATIONAL TRADE COMMISSION

COMMISSIONERS

Paula Stern, Chairwoman Susan W. Llebeler, Vice Chairman . Alfred E. Eckes Seeley G. Lodwick David B. Rohr Anne E. Brunsdale

This report was prepared principally by

Jim McElroy and Dennis Rapkins

Machinery and Transportation Equipment Branch Machinery and Equipment Division ·

Off ice of Industries Erland Heginbotham, Director

Address all communications to . Kenneth R. Mason, Secretary to the Com.mission United States International Trade Com.mission Washington, D.C 20436 C 0 N T E N T S

Tables

1. New passenger automobiles: U.S. retail sales of domestic production, production, inventory, days' supply, and employment, by specified periods , May 19 8 4-Apri 1 19 86--·· .. ···:·-·--··-.. ·--·--·-·-----··-·-·-·------·-··-'-·-.- .. ·--··-·-·------1 2. New passenger a1itomobiles: U.S. imports for consumption, by principal sources and by specified periods, April 1984- Ma re h 19 8 6 ... ·--····---...... --... ·----···--···· .. -----··-·--.. ····-·---·-···· .. ··--·····-··-··· .. ·····-···-· .. ·-·---·-·· .. ·--...... -...... -...... --····----· .. ·· ... ____ 2 3. Lightweight automobile trucks and bodies and cab/chassis for light weight automobile trucks: U.S. imports for consumption, by principal sources and by specified periods, April 1984- Ma re h 19 8 6·-·----· .. ·--·-·-.... -... -... ----·--·-·--·-·--···· .. ·-----·---.... -----·-··· .. ··----··· .. -·---·-.... ···--···· .. ··----·-·-· .. --.... - ...... _____ 3 4. New passenger automobiles: U.S. exports of domestic merchandise, by principal markets and by specified periods, April 1984- Ma r ch 1 9 8 6-·· ...... --.. ·----· .. ···--·-·-····--··-····-·····-···············-····-···-·······---·······-----· .. ·----· .. ·-·-··········-· .. -·····---···----.. ·-··-.. ·--·-····-----.. ·-- 4 5. Lightweight automobile trucks and bodies and cab/chassis for light weight automobile trucks: U.S. exports of domestic merchandise, by principal markets and by specified periods, April 1984- Marc h 19 8 6--.. ··--·-··-----·--·----··-----·········------·-··-·-·-··· .. ·-··-.. ·---... -...... -·····-······-·--.. --··-·--···-·· .. ···--···-----···~·--·-·-· 5 6. New passenger automobiles: Sales of domestic and imported passenger automobiles and sales of imported passenger automobiles as a percent of total U.S. sales, by specified periods, 1985 and 1986···-·····---· .. ··-----·--- 6 7. New passenger automobiles: Price indexes, by speci fled periods, 19 8 5 and 19 8 6·- .. ··-··----·--·-· .. ·--·-··· .. ---.. ··························--·-·--·-·--·······--·-·--·---.. --.. - ...... -...... --····-····---·--··--····--··· ··- 6 8. New passenger automobiles: Retail price changes in ·the U.S. market during Apr i 1 19 8 6 ·--.... ·····----····--.. ·-·--· .. ··-·-·-·----.. -.. --·-·-·-·-·.. ··--·-·--..... _...... _ ...... --.-· ...... __ ._ 7 9. Sales and profits {loss) on major U.S. automobile manufacturers' operations, by specified periods, 1985 and 1986-·-·····--· .. ·-···· .. ·-··----··--...... -...... ___ 7 10. Manufacturers' suggested retail prices of selected U.S. and Japanese au to mob i 1es , April 19 81 ·-May 19 8 6···· .. --...... - ... - .. ·-···--··· ...... -._...... - ...... ___ ...... -·---- 8

1 Table 1.--New passenger automobiles: U.S. retail sales of domestic production, production, inventory, days' supply, and employment, by specified periods, May 1994-April 1906

--··-·_ .. ____ .. ______(In_tho~~.!!9..~ of uni ts; thou~ands of employe~_tl 1985...::.86 !2~1~8~5~~ Mar. Apr. May 1985- Apr. May 1984- !_tern------19 8 6 _ 1986 __A..E! . 19 8 6 _____ 19 t!.~------8.Er..:...-1..9 8_?. __ Retail sales of domestic production: Subcompact ...... 123 180 2, 110 228 2,226 Compact ...... 136 132 1,417 160 1,427 Intermediate ...... 233 238 2,661 236 2,421 Standard ...... 84 91 803 92 1,073 Luxury ...... __ ,_B___ , ___ 78 ___ ,__ ._994 ______78 ______984 Total ...... 650 ... _120 .!..t.Q~,?. ______. .lJ..,i_ ____B_t..!1_6 __ , __ Production: Subcompact ...... 140 173 1,581 135 1,529 Compact ...... 193 128 2,011 182 1,916 Intermediate ...... 227 179 2,874 290 2,857 Standard ...... 40 26 587 67 .902 Luxury ...... 67 68 .., ___iy_§.. ______7_8 ______84_4 ___ Total ...... c •••• 667 574 7..J!IL__ 751 8....t..049 Inventory: Subcompact ...... 317 324 !I 264 !I Compact ...... 414 421 .!/ 347 11 Intermediate ...... 695 726 1/ 523 !I Standard ...... 240 249 I1 255 .!/ Luxury ...... 193 187 -~_L______l.!!4 _____ 1/ Total ...... 1,867 1,907 11_ ...... ______L,_5 7 3 1/ Days' supply: ?:_/ Subcompact ...... 65 69 !/ 49 !I Compact ...... 72 80 .!/ 42 _v Intermediate ...... 72 81 !/ 53 .v Standard ...... 100 77 .11 72 .!/ Luxury ...... _72 __ 66 1/_ 65 1/ Average ...... 72 76 1/ 53 1/ Employment: 1/ Total employees ...... 1/ 858 ~/ 851 !/ §/ 863 !/ -- Production workers .. . 1/ 662 §/ 655- .!/ §./ 669 .!/ - .!/ Not applicable. ----· ?:_/Days' supply is an average for each class size which is determined by the previous month's retail sales. 11 Employment data are for SIC 371 (motor vehicles and motor vehicle equipment). ii Data are for February 1986, revised . .?.I Data are for March 1986. ~/ Data are for March 1985.

Source: Retail sales and production, Data Resources, Inc. Auto Information Bank; days' supply and inventory, Automotive News; and employment, U.S. Department of Labor.

Note.--Because of rounding, figures may not add to the totals shown. 2

Table 2. ·--New passenger automobiles: U.S. imports for consumption, by principal sources and by specified periods, April 1984-March 1986 1/

1985-86 1984-85 February April 1985- March April 1984-

1986 March ,....,,,-_;;;...,,_::;.._~_...:..::...::.::;__;_~~-.:.".:=..~:_.=..;;_;_;1986 1985 March 1985

Quantity (units)

Japan ...... 182,827 193,592 2,605,407 161,622 2 ,031, 250 Canada ...... 95,422 104,276 1,169,322 95,623 1,073,029 West Germany .... . 41,600 42,211 457,652 49,680 361,119

Sweden ...... 16,148 14,919 144 I 677 11,906 118,883 Italy ...... 601 1,231 9,570 866 8,769 United Kingdom .. . 1,822 2,438 25,653 2,925 20,054 France ...... 650 1,222 17,123 2,395 53,789

Mexico ...... 4,303 3,407 23 I 013 1,395 7,993 Yugoslavia ...... 1,474 2,862 14,217 l

Value (1,000 dollars)

Japan ...... l, 318,022 l,426,154 17,264,830 1,033,732 12,852,520 Canada ...... 941,367 1,032,755 11,487,671 922,661 10,146,528 West Germany .... . 631, 454 686,515 6,421,609 675,686 4,901,839 Sweden ...... 194,254 175,770 1,697,474 133,765 1,310,971 Italy ...... 12,482 19, 372 141,622 11, 983 129,811 United Kingdom .. . 46,535 60,284 633,417 65,766 481,906 France ...... 7,059 13,202 171,527 23,823 325,399 Mexico ...... 44,904 32,620 187,668 9,279 51,645 Yugoslavia ...... 2,784 7,165 34,622

Korea ...... 25,996 61,058 77 I 775 All other ...... 9,223 13,674 160,843 81540 92,518 Total ...... 3,234,080 3,528,569 38,279,058 2,885,235 30,266,137

11 Data include imports into Puerto Rico and TSUSA item 692.1005; data do not include automobiles assembled in Foreign-Trade Zones.

Source Compiled from official statistics of the U.S. Department of Commerce.

Note. ·-Because of rounding, figures may not add to the totals shown. 3

Table 3 .···-Lightweight automobile trucks 1/ and bodies and cab/chassis for lightweight automobile trucks: U.S. i;ports for consumption, by principal sources and by specified periods, April 1934·-March 1986 'l:_/ -··-·---· 1985-86 1984-85 February March April 1985- March April 1984- Source 1986 1986 March 1986 1985 March 1985

Quantity (units) 3/

Japan ...... 68,289 94,025 876,818 60,582 639,512 Canada ...... 27,712 26,866 320,376 31,251 349,973 Mexico ...... 885 1, 350 27,600 l, l25 8,801 All other ...... 1 24 11732 230 31966 Total ...... _1_~887 122,265 1,226,526 93,788 1,002,252

Value (1, 000 dollars)

Japan ...... 321,646 443,105 3,871,996 257,926 2,674,648 Canada ...... 252,438 247,273 2,621,491 269,171 2,838,770 Mexico ...... 6,528 10,267 l.93,049 12,079 64,799 All other ...... 51390 81149 521213 956 321522 Total ...... 586,002 708,794 6,llf3,749 540, 132 5,610,739

11 Defined as not over 10,000 pounds gvw .. ?:./ Partially estimated, all data include imports into Puerto Rico. 11 Quantity data include complete trucks and cab/chassis, ·but exclude bodies.

Source: Compiled .from official statistics of the U.S. Department of Commerce, except as noted.

Note .-····Because of rounding, figures may not add to the totals shown. 4

Table 4.--·New passenger automobiles: U.S. exports of domestic .merchandise, by principal markets and by specified periods, April 1984-March 1986

1985-86 1984~-~8~5----~· F::ibruary March April 1985- March April 1984- !"Jarket 1986 1986 March 1986 1985 March 1985

---- - Quantity (units) Canada ...... 61,882 66,442 682,550 71,154 606,926 Japan ...... 181 396 1, 313 206 2,183 All other ...... ___L_..521 21918 221481 1!990 231976 Total ...... 63,584 69,756 706 ,.344 73,350 633,085

Value (1 !000 dollars)

Canada ...... 560,295 566,701 5,875,572 590,247 4,823,178 Jc.~pan ...... 3,295 5,948 21, 397 2,715 29,458 All other ...... 18!561 561225 2921368 231071 2801770 Total ...... 582,151 628,874 6,109,337 616,033 5,133,406

·----·----Source: Compiled from official statistics of the U.S. Department of Commerce------.

.Note.--···Because of rounding, figures may not add to the totals shown. 5

Table 5.--Lightweight automobile trucks j/ and bodies and cab/chassis for light weight automobile trucks: U.S. exports of domestic merchandise, by principal markets and by specified periods, April 1984-March 1986 ~/

1985-8§___ ,______------l.~84-.~8.:::,5 ______February March April 1985- March. April 1984- Mar.~ke~t=------=-19~8~6~----~1~9~8~6 ____!.,M=a~r~c~h-=-19~8~6~---=1~9.:::.8.:::.5 ____.._~M~a~r~c~h~1~9~85-'--_

------~Q_u_a_nt) ty (uni ts) 3/ Canada ...... 11,877 12,162 143,836 10,849 119,985 All other ...... 378 1 390 9,741 1,151 14,956 Total ...... 1=2~,2~5~5;,..._ _ __;1~3~,~5~5=2 _____..;153,577 12,000 - 134,941 ----

·------V""-'a=l;;..:;u_EL... <1, 000 dollars)

Canada ...... 108,600 100 I 231 1,236,055 90,418 835,103 All other ...... 3,365 '1:..it._277 100, 198 _____13~1...- 184,876 Total ...... 111,965 122,508 1, 336, 253 103,710 1,019,979 11 Defined as not over 10,000 pounds gvw. ~/ Partially estimated. ~/Quantity data include complete trucks and cab/chassis, but exclude bodies.

Source: Compiled from official statistics of the U.S. Department of Com1ru•rce, except as noted.

Note.----Because of rounding, figures may not add to the totals shown. 6

Table 6 .-·New pa~senger automobiles: Sales of domestic and imported passenger automobiles and sales of imported passenger automobiles as a percent of tot~l U.S. sales, by specified periods, 1985 and 1986

Sales of- Ratio of im-· Domestic -~~------~~Imported Total U.S. port sales to ~-~•:t,gmobi les..1.L. automobiles 2/ sales total sales 1986 1985 1986 1985 1986 1985 1986 1985 --Percent----

January ... 635,904 628,037 237,201 200,184 073,105 036,221 27.2 24.9 February .. 613,371 645,317 219,096 193,290 832,467 838,607 26.3 23.0 Jan·-Feb ... 1,249,275 1,273,354 456,377 401, 474 1,705,652 1,674,828 26.8 24.0 March ..... 649,351 768,927 247,487 201,341 896,838 970,268 27.6 20.8 Jan-4'1ar ... 1,898,626 2,042,281 703,864 602,815 2,602,490 2,645,096 27.0 22.8 Apri 1. .... 719,563 788,282 252,609 198,241 97.2,172 986,523 26.0 20.1 Jan--Apr ... 2,618,189 2,830,563 956,473 801,056 3,574,662 3,631,619 26.8 22.1 -- , .. ______1/ Domestic automobile sales include U.S. and Canadian-built automobiles sold in the United States. '!:_/ Does not include automobiles imported from Canada.

Source: Automotiv~ Ne~~·

Table 7.--·New passenger automobiles: Price indexes, by specified periods, 1985 and 1986 (1967 = 100) ------·------.1986____ - 1985 and 1 ~.!1§______Feb. Mar. Percent Mar. Mar. Percent Item 1986 1986 change - 1985 1906 __ cha~ Consumer Price Index: Unadjusted .... 220.4 220.3 -0.1 214.1 220.3 +2.9 Seasonally adjusted .... 219.5 219.9 +0.2 214.3 219.9 +2.6 Produce1· Price Index: Unadjusted .... 229.6 229.1 -0.2 227.0 229.1 +0.9 Seasonally adjusted .... 228.7 229.1 +0.2 227.9 229. l. +0.5

Source: U.S. Department of Labor. 7

Table 8.~New passenger automobiles: Retail price changes in the U.S. market during April 1986

Retail price changes, in Source and size of category dollars, April 1986 (+ or---=2

U.S. producers: General Motors !/ ...... +400 Ford ...... ··············· No change. Chrysler ...... No change. European Community producers: Subcompact ...... +360 to 650 Compact ...... +700 Luxury ...... No change. Japanese producers: Subcompact ...... ; +97 to 422 Compact ...... No change. Luxury ...... No change. Korean producers: Subcompact ...... -...... +200 !/ Nonweighted average price changes including optional equipment for entire 1986 model line· (adjusted to reflect equipment additions or de let ions).

Source: Automotive News, April 1986.

Table 9.~Sales and profits (loss) on major U.S. automobile manufacturers' operations, by specified periods, 1985 and 1986 !/

(In millions of ~~o~l~l~a~r~s~>~~~-~~~~~~~~~~ 1986 1985 Item and firm January-41arch January-March

Sales: General Motors .. ; ...... 26,820 24,183 Ford ...... 14,785 13,246 Chrysler ...... 5, 778 5,408 American Motors ...... 918 919 Total ...... ·, 48,301 43,756 Profits: General Motors ...... 1,064 1,072 Ford ...... 728 183 Chrysler ...... 357 508 American Motors ...... (19) (29) Total ...... 2,130 2,334

!/ Data are for world operations.

Source: Automotive News. Table 10.--Manufacturers' suggested retail prices of selected U.S. and Japanese automobiles, April 1981-May 1986 ll

April 1, 1981 May l, 1986 Option- Option- Percent change in optionally ally ally equipped model Base equipped Base equipped April 1986 April 1981- Company, model, and options 2/ model 3/ model 3/ model J/ model 3/ May 1986 May 1986

General l'lotors: Chevette CS, 2 .door HB (PB,. R\lll), TG) ...... $5,155 $5,405 $5,775 $6,130 +2.5 +13.4 Citation, 4 door HB {PB, RWD, TG, AT) 1/ ..... 6,404 . 7,014 7,232 8,042 NA +14.7 Cimarron, 4 door (AT) ...... ~/ 12,131 ~/ 12,501 13,559 1°3 « 949, +3.2 +11.6 Ford: Escort L 2 door HB (PB, RWD, TG) ...... 5,556 5,857 6,327 6,561 0 +12.0 Tempo GL 4 door (RWD, AT, TG) §/ ...... 6,421 6,953 7,508 8,214 0 +18.1 LTD Crown Victoria, 4 door (RWD, TG, ILG, AC) ...... 8,519 10.102 13,784 14,691 0 +45.4 Chrysler: Plymouth Turismo, 2 door HB (RWD) ...... 5,938 6,188 6,741 6,882 0 +11.2 Reliant, 4 door (RWD, TG, R, AT) ...... 5,980 6,600 7,179 7,967 0 +19.3 Dodge 600, 4 door (RWD, AC) l/ ...... 6,672 7,502 10,022 10,500 0 +40.0 Toyota: 00 Corolla, Deluxe, 4 door (R) ...... 5,688 5,793 7,648 7,908 +3.9 +36.5 Cressida, 4 door ...... 11, 599 11, 599 17,400 17,400 +5.1 +50.7 Nissan (Datsun): Sentra Deluxe 2 door 8/ ...... 5,369 5,369 6,999 6,999 +0.4 +30.4 Stanza GL, 4 door (AT~~/ ...... 6,339 7,749 10,069 10,619 0 . +37.0 Maxima GXE, 4 door ...... 10,379 10,379 15,199 15,199 +5.1 +46.4 Honda: Civic 1300, 2 door HB (R) ...... 4,599 4,694 5,698 5,886 +0.8 +25.4 Accord DX, 4 door (R, AT) ...... 7,645 7,950 9,998 10,656 +3.1 +34.3 l'lazda: 323 Deluxe, 2 door HB (R) ~/ ...... 5,495 5,650 7,395 7,770 +5.4 +37.5 !/ Suggested retail prices do not include any dealer incentives, below-market financing or rebates offered by' manufacturers or importers. £/Th~ following codes apply: PB= power brakes; RWD =rear window defroster; TG =tinted glass; HB =hatchback; AT= automatic transmission; AC = air conditioning; R = radio; ILG= interior luxury group. 3/ Base models are 2 door or 2 door hatchback and 4 door or 4 door hatchback models. Optionally equipped models are base models which have been equipped with the options listed in paranthesis. 4/ Citation discontinued after 1985 model year. S/ Cimarron not sold until May 21, 1981. it Tempo replaced the Fairmont Futura. ZI Dodge 600 replaced the Diplomat. !/ Sentra replaced the 210; Stanza replaced the 510. 21 323 r~placed the GLC. Source: Compiled from data supplied by U.S. manufacturers, Japanese importers, and Automotive News. Note: Some 1981-86 models have been discontinued; these models have been replaced by comparable models where possible. In addition, some equipment that was optional on prior models is now included in the base price or equipment that was standard has been deleted, making price comparisons of prior-year models difficult.